Morgan Stanley is set to offer spot bitcoin exchange-traded funds (ETFs) to select clients through its 15,000 financial advisors starting next week. This marks a significant first for a major Wall Street bank. Advisors can pitch Blackrock’s Ishares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund to eligible clients, reflecting the growing acceptance of bitcoin in mainstream finance.
Morgan Stanley’s 15,000 Financial Advisors Can Start Offering Bitcoin ETFs to Select Clients
U.S. spot bitcoin exchange-traded funds (ETFs) have been available since January, following the U.S. Securities and Exchange Commission (SEC)’s approval. These ETFs offer direct bitcoin exposure, unlike futures-based ETFs that deal with contracts. Currently, they are available on an unsolicited basis, meaning financial advisors cannot actively promote them to clients. Experts believe that when global investment banks start letting financial advisors solicit these ETFs, it will significantly boost the bitcoin ETF industry.
Morgan Stanley may be the first to take this step. The global investment bank reportedly informed its financial advisors on Friday that they will soon be able to promote spot bitcoin ETFs to select clients, marking a significant first for a major Wall Street bank.
Starting Aug. 7, the bank’s 15,000 advisors can pitch shares of Blackrock’s Ishares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) to eligible clients, CNBC reported, citing people with knowledge of the policy. This move highlights the growing acceptance of bitcoin in mainstream finance.
Morgan Stanley’s decision reflects a response to client demand and the evolving digital assets market. However, the bank is approaching the rollout cautiously, restricting the bitcoin ETF offerings to clients with a net worth of at least $1.5 million, a high-risk tolerance, and a desire for speculative investments.
Moreover, the investments are limited to taxable brokerage accounts, not retirement accounts, and the bank will monitor clients’ crypto holdings to avoid excessive exposure. Other major banks like Goldman Sachs, JPMorgan, Bank of America, and Wells Fargo still prohibit their advisors from pitching spot bitcoin ETFs, allowing trades only if clients request them.
Source: Bitcoin.comNews
